Singapore, 10 March 2026 – Global markets rebounded sharply while oil prices plunged after remarks from U.S. President Donald Trump suggesting the conflict involving Iran could end soon, easing fears of a prolonged energy shock that had rattled investors worldwide.
Asian equities led the recovery as investor sentiment improved following the comments, which contrasted with earlier fears that the conflict could disrupt global oil supply routes and intensify inflationary pressures.
Asian Stocks Jump as Risk Appetite Returns
A broad rally swept across Asian markets as investors moved back into risk assets.
- MSCI’s Asia-Pacific index climbed about 2.6%
- Japan’s Nikkei 225 surged 3.6%
- South Korea’s Kospi jumped 6.4%, triggering a brief trading halt due to the sharp gains
The rebound followed a volatile trading session earlier when escalating geopolitical tensions had driven investors toward safe-haven assets and pushed oil prices sharply higher.
Oil Prices Reverse Earlier Surge
Energy markets experienced dramatic swings as traders responded to shifting geopolitical signals.
Brent crude futures fell as much as 10% to below US$90 per barrel, reversing part of the earlier surge that had driven prices toward US$120 during the peak of market panic.
The initial rally had been fuelled by fears that hostilities could disrupt shipping through the Strait of Hormuz, a key global oil transit route.
Trump’s remarks that the war could be “over soon” helped reduce the geopolitical risk premium embedded in oil prices and triggered heavy profit-taking among traders.
Bond Yields Ease as Markets Reassess Rate Outlook
U.S. Treasury bonds also recovered after the earlier oil-driven inflation scare.
The 10-year Treasury yield slipped to around 4.109%, as investors recalibrated expectations for monetary policy.
Market pricing now suggests the U.S. Federal Reserve’s first interest-rate cut may not arrive until July, reflecting ongoing uncertainty around inflation and economic resilience.
Dollar Weakens While Gold Holds Steady
Currency markets also reacted to the improved sentiment.
The U.S. dollar index slipped slightly as investors shifted away from safe-haven assets. Meanwhile, gold prices remained broadly stable, trading within the narrow range seen over the past week.
Cryptocurrencies also showed limited movement, with Bitcoin hovering near US$69,000 while Ether traded around US$2,018.
Geopolitical Risks Still Loom
Despite the rebound, analysts caution that markets remain vulnerable to sudden shifts in geopolitical developments.
Iran’s military has warned it could intensify missile strikes, highlighting the risk that the conflict could still escalate even as diplomatic signals suggest a possible resolution.
For investors, the trajectory of the Middle East conflict will remain one of the most important drivers of global financial markets in the coming weeks.
